The productivity growth that was observed in 2021 is due -more than just to the use of technologies and teleworking-, to an opportunistic capture in a context of pandemic legitimacy.

El crecimiento de productividad que se observó el 2021 se debe -más que solo al uso de tecnologías y teletrabajo-, a una captura oportunista en un contexto de legitimidad pandémica.

The Great Challenge Is To Increase Productivity By 10%

  in the next 10 years Starting with a Cultural Change

According to empirical experience in the public and private world, the first 30 to 50% increase in productivity does not require investment. As is well. It can be solved by looking at the business processes of organizations and adjusting them with the human capital and infrastructure available.

Reaching a higher level of productivity is essential to sustain the required economic growth, and it is transversal to all Governments, without political current. It is a path that yes or yes must be addressed for the benefit of workers, the country and the companies

Several complex scenarios have had to face the mining companies along with the higher level of economic and social uncertainty in recent times. Faced with this, the great challenge is to continue adapting and, at the same time, generate value. A good way to move forward, if not the most reliable, is to increase the productivity levels of current operations, which will allow generating the necessary resources to respond to new demands.

There is evidence that productivity can be a good tool to deal with a price adjustment. It is a challenge and an opportunity that real estate and construction companies should consider, because there is a gap in that area.

Companies have had to face various complex scenarios along with a higher level of economic and social uncertainty. Faced with this, the great challenge is to adapt and, at the same time, generate value. A good way to move forward, if not the most reliable, is by increasing productivity, which allows generating the necessary resources to respond to the new demands generated. 

Juan Francisco Ortiz, executive of Orca Business Consulting, details the common factors and the adaptations that companies must make in order to increase productivity in this new normality that we will be facing during 2022.

In the face of crises, such as the one generated by covid-19, the observer, knowledge and multidisciplines can  accelerate good results, and therein lies the value of the methodology.

The effects of climate change are irreversible, according to the UN report, which is a stirring blow. However, it is an opportunity for improvement for Chile not only because of the ethical responsibility that corresponds to each company, but also because considering the effects of production on climate change is good business.

We saw our results and the demand for our products improve in this pandemic scenario, so we had to strengthen ourselves on all fronts. With the OR-CA methodology we reviewed our business processes, and we realized that we could improve value capture, optimizing our resources, and operating more efficiently.

What would happen, for example, if taxes were thought differently in regions to increase productivity in Chile? Would it be an encouragement to move forward? We know that there are different conditions in each sector and industry, but these economic incentives could boost the productivity of companies and individuals.

The new president of Sofofa, Richard Von Appen, gave a lucid message a few days ago about the need to listen more inside companies and increase wages to improve productivity.

Productivity and business growth continue to be the appropriate strategic response to maintain operations with healthy economic balances.

In this moment of pandemic and in the midst of the various key discussions that the country is experiencing, we continue to be called to generate social and economic value.

If we do not go out in search of productive and business potential, if we do not recognize it, and, on the contrary, we remain "believing the story", we will later face the most drastic measures with higher costs for all, such as mass dismissal of workers

Apparently a viable way is to review the processes to simplify operations, focusing on solving daily problems, and performing intrapreneurship to achieve productivity, and that this is taken and transferred to customers. Companies serving companies, which are also customers, at competitive prices, reducing costs and generating higher sales to maintain the leadership obtained.

The following aspects must be considered to increase productivity in key processes, maintaining production levels, and thus take advantage of the good times that copper is experiencing.

The greatest risk is not considering productivity as a national strategic response, of organizations and companies to face the challenges we are facing.

We usually accommodate that others are the guinea pigs, that others change and that they also do it according to what we believe is best, but when it comes to being forced to adopt certain adjustments ourselves, pain and shame are often evident very deep, by procedures that have lost validity, especially in a current context of orthogonality that requires adaptation.

It is possible to absolutely reconcile the equation between the well-being of health and the possibility of work. Because as the health authorities have said, 73% of outbreaks originate in homes, or in social gatherings held in homes.

The protocols of companies and public places are being complied with. I have verified it in the operations of industries, in logistics chains, hotels and airports. But what about in our private life?

It is good news that business confidence rose again in this fourth quarter and reached its seventh consecutive month of rise with a value of 54.16 points in November. This lower pessimism opens up opportunities for improvement in company operations, which is becoming a relevant issue.

Are we working in coordination? Are we looking at the execution of organizations to improve productivity? Do we have the appropriate methodologies? Do we incorporate the necessary knowledge within the organization? What was the last time that the director of a company , of a construction company, for example, asked how the productivity per man-hour in construction is doing? Are you asking every month how these indices are doing?

When there are certainties, everything is worth more. Certainty is something that all people and organizations look for in their projects and business processes, and when they are brought to the right levels, greater value is achieved.

It is therefore necessary to anticipate what is coming and review the business again, adjusting the way of operating. To do this, we need to make cash, liquidating non-essential business assets in the short term, strengthening our focus on the core business.

The directories must be renewed by incorporating profiles with the necessary skills to promote the changes that cannot continue to be postponed, and that must be made on time.  For this reason, these positions in companies require a change of cabinet, which reflects a fresh and transversal view, adding voices from the social, technological and even the arts worlds.  

In Chile we still have a long way to go in this area. To increase productivity we must take the challenge from the companies, and break with the paradigm of immediate success. We have a very successful business culture, very unionized, which has taken away degrees of freedom, with vertical organizations, with little entrepreneurship and diversity of knowledge. In short, with a low willingness to risk, and a lot of fear of losing the investment. We have no culture of failure. 

Leaders and companies are called to adapt, to travel the path of the chameleon, skillful species, quick reaction. An example is electronic commerce, which is showing a different cost structure, and which is allowing companies to adapt, validating their new way of selling, with positive figures and expanding beyond the ABC1 segment.

The Candelaria mining conflict, -which produced 111 thousand tons in 2019-, should be approached from the Human Side of Productivity, as indicated by the OECD, so that owners, executives and workers push towards the same side, embracing the objectives of the company.

Given that jobs will decrease, the question arises: are companies considering raising the rents of the equipment that remains available? This is not an altruistic idea, but a key aspect, because we must bear in mind that this practice will ultimately help the country's productivity.